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Chapter 4 Solving DSGE models advanced topics This chapter is a collection of topics - not all related to each other - that you will probably find interesting or at least understandable, if you have read, and/ or feel comfortable with, the earlier chapter 3 on the basics of solving DSGE models. To provide at least some consistency, this chapter is divided into three sections. The first section deals directly with features of Dynare, such as dealing with correlated shocks, finding and saving your output, using loops, referring to external files and dealing with infinite eigenvalues. The second section overviews some of the inner workings of Dynare. The goal is to provide a brief explanation of the files that are created by Dynare to help you in troubleshooting or provide a starting point in case you actually want to customize the way Dynare works. The third section of the chapter focusses on modeling tips optimized for Dynare, but possibly also helpful for other work. 4.1 4.1.1 Dynare features and functionality Other examples Other examples of .mod files used to generate impulse response functions are available on the Dynare website. In particular, Jesus Fernandez-Villaverde has provided a series of RBC model variants (from the most basic to some including variable capacity utilization, indivisible labor and investment specific technological change). You can find these, along with helpful notes and explanations, in the Official Examples section of the Dynare website. Also, don’t forget to check occasionally the Open Online Examples page to see if any other user has posted an example that could help you in your 37